1. A company has determined that its optimal capital structure consists of 48 percent debt and the rest is equity. Given the following information, calculate the firm's weighted average cost of capital.kd = 7.2 %Tax rate = 36 %P0 = $ 18.84 Growth = 4.0 %D1 = $ 1.06 Show your answer to the nearest .1%

2. Virus Stopper Inc., a supplier of computer safeguard systems, uses a cost of capital of 10 percent to evaluate average-risk projects, and it adds or subtracts 2 percentage points to evaluate projects of more or less risk. Currently, two mutually exclusive projects are under consideration. Both have a cost of $ 380 and will last 4 years. Project A, a riskier-than-average project, will produce annual end of year cash flows of $ 88 . Project B, of less than average risk, will produce cash flows of $ 233 at the end of Years 3 and 4 only. To the nearest .01, list the NPV of the higher NPV project. Note, if the NPV is negative, place a - sign in front of your answer. Do not use the $ symbol.